The Canada Emergency
Business Account


Latest Updates

Last updated: March 15, 2022

You may now submit repayment requests for your CEBA loan through Online Banking. Log on to Online Banking to request a repayment.

The Government of Canada has announced an extension of the repayment deadline for Canada Emergency Business Account (CEBA) loans to qualify for partial loan forgiveness. The deadline is expected to be extended by a year, from December 31, 2022 to December 31, 2023. Further details will be provided as they are made available by the Government of Canada.

The program deadline for the federal government’s Canada Emergency Business Account has passed, but we are continuing to provide support to members with funded CEBA loans.

For status updates of your CEBA loan, you may check online at the Government of Canada’s CEBA Application Status Website. If you continue to have questions after visiting the website, you may call the CEBA Call Centre at 1.888.324.4201. The Call Centre is open Monday to Friday from 5:00 am to 6:00 pm Pacific Time.

CEBA Program Overview

The CEBA program provided a $40,000 or $60,000 loan to eligible business to help cover non-deferrable operating costs while they were affected by COVID-19.

Terms for loans repaid prior to the forgiveness deadline (expected to be December 31, 2023):

  • Interest rate: 0%
  • Principal payments are not required.
  • Forgiveness:
    • $40,000 loans: $10,000 may be forgiven if $30,000 is repaid by the forgiveness deadline.
    • $60,000 loans: $20,000 may be forgiven if $40,000 of the loan balance is fully repaid by the forgiveness deadline.

Terms for loans repaid after the forgiveness deadline (expected to be December 31, 2023):

  • The loan will be extended to December 31, 2025 if not repaid by the forgiveness deadline
  • Interest rate:  5% per year

Loan Forgiveness

Borrowers who received $60,000 in CEBA funds:

For borrowers who took out the full $60,000 CEBA loan, whether as a new applicant or through the original CEBA loan plus the expansion loan, the program provides for a blended rate of forgiveness that works out to 1/3 of the loan, if 2/3 of the original balance is paid on or before the forgiveness deadline (expected to be December 31, 2023). To have $20,000 of your $60,000 loan forgiven, simply repay $40,000 on or before the forgiveness deadline.

Example 1:

Amount Borrowed:  $60,000

Amount Repaid by the forgiveness deadline:  $40,000

Available Forgiveness:  $20,000

Example 2:

Amount Borrowed:  $60,000

Amount Repaid by the forgiveness deadline:  $35,000

Available Forgiveness:  $0

Borrowers who received $40,000 in CEBA funds:

For borrowers who took the original $40,000 CEBA loan before December 2020 and did not apply for an expansion loan, $10,000 of the loan will be forgiven if $30,000 is paid on or before the forgiveness deadline (expected to be December 31, 2023).

Example 1:

Amount Borrowed:  $40,000

Amount Repaid by the forgiveness deadline:  $30,000

Available Forgiveness:  $10,000

Example 2:

Amount Borrowed:  $40,000

Amount Repaid by the forgiveness deadline:  $25,000

Available Forgiveness:  $0

Borrowers who repaid the original $40,000 loan before December 2020 and received the $20,000 expansion loan:

Members who received the $20,000 CEBA expansion loan after having fully repaid their original $40,000 CEBA loan will have $10,000 of their expansion loan forgiven if the additional $10,000 is paid on or before the forgiveness deadline (expected to be December 31, 2023).

Example 1:

Amount Borrowed:  $20,000

Amount Repaid by the forgiveness deadline:  $10,000

Available Forgiveness:  $10,000

Example 2:

Amount Borrowed:  $20,000

Amount Repaid by the forgiveness deadline:  $8,000

Available Forgiveness:  $0

For further detail on the forgiveness terms of the CEBA program, please visit the Government of Canada’s CEBA website at https://ceba-cuec.ca.

Loan Repayment

You may submit repayment requests for your CEBA loan through Online Banking.

Frequently Asked Questions

No. Program deadlines have passed and applications are no longer being taken. Applicants can no longer:

  • Apply for a $60,000 CEBA loan or the $20,000 expansion
  • Submit additional information related to their Business Numbers
  • Requalify under the Eligible Non-Deferrable Expenses Stream

Up to the loan forgiveness deadline (expected to be December 31, 2023), the interest rate is 0%. 

Starting the day after the deadline, interest will accrue on the balance of the term loan at the rate of 5% per year, payable monthly on the last day of each month.

You have the opportunity to make payments on the loan at your discretion.  Prior to the loan forgiveness deadline (expected to be December 31, 2023), you can make payments at any time in any amount without penalty.

To be eligible for loan forgiveness, you need to repay the full amounts outlined above under Loan Forgiveness by loan forgiveness deadline.

Your CEBA loan must be repaid in full by December 31, 2025.

Any outstanding funds the day after the loan forgiveness deadline (expected to be December 31, 2023) will be subject to a 5% per year interest fee with no principal payments required.  The remaining balance is to be paid in full no later than December 31, 2025.  If there is any balance outstanding after the forgiveness deadline, the loan will not be eligible for any forgiveness.

The forgivable portion of the loan ($10,000 or $20,000, depending on the amount of the loan received) is taxable.  The remaining amount is considered a repayable loan, and thus does not need to be declared. The forgivable portion of the loan would be taxable in the year the loan was received.

This information is provided for general purposes and Coast Capital is not responsible for any actions taken based on this information. For more information on how to declare this income, or any other tax questions related to the CEBA loan, we strongly recommend consulting with appropriate tax advisors.

The CEBA program has not yet provided us the information on how to proceed in cases where members receiving the loan were later deemed ineligible for CEBA. We apologize for the inconvenience.  We will contact you as soon as further information is available.

Please visit https://ceba-cuec.ca, the Government of Canada’s website for the CEBA program, to learn more.